If the Federal Reserve has printed over $2 trillion dollar and given it to banks to lend, why is U.S. inflation still low? Photo by Pepi Stojanovski In this episode you’ll learn: How banks create money and how reserves factor into banks' lending decisions.How much has the money supply increased as a result of bank lending and Federal Reserve action.How Federal Reserve bond buying increased liquidity but not national wealth.Why we haven't seen higher inflation. Show … [Read more...]
199: What Kind of Money Is It?
How a bank panic led to the creation of the Federal Reserve, and why having diversified sources of money can protect us in case we have a bank panic today and can't get access to our bank deposits. Photo by Annette Fischer In this episode you’ll learn: How a bank panic and economic crisis in 1907 led to the creation of the U.S. Federal Reserve in 1913.How U.S. currency evolved after the establishment of the Federal Reserve.How currency, bank deposits, gold and Bitcoin … [Read more...]
163 Plus: Federal Reserve, Pension Crisis and Is There Enough To Retire
This week July 1, 2017 on Money For the Rest of Us Plus we learn how bank reserves at the U.S. Federal Reserve will be reduced as the central bank reduces its holdings of U.S Government bonds. We use the tools on Money For the Rest of Us Plus to analyze whether a member will have enough to retire. We explore the severity of pension fund crisis for U.S. states and municipalities as well as for U.S. businesses and the potential fallout from the crisis. Finally, we take a brief look at a … [Read more...]
162: Is Inflation A Good Thing?
What causes inflation and why do central banks allow it to persist instead of having a 0% inflation target. Photo by Aaron Burden In this episode you’ll learn: How inflation erodes purchasing power over time. How money creation by banks causes inflation. What is the non accelerating inflation rate of unemployment. How shorter-term rates influence longer-term rates. Why central banks have inflation targets. Show Notes Did Quantitative Easing Work? - Federal … [Read more...]
82: What Assets Return When The Fed Raises Rates
How have various asset classes performed when the Federal Reserve begins tightening by raising short-term interest rates. Photo by Joe Wessells In this episode you'll learn: How interest rates have declined over the decades.What determines interest rates.What are different measures of inflation.How long after the first Federal Reserve begins raising its policy rate have recessions begun.What have stocks, bonds and other asset categories returned one year after the Federal Reserve … [Read more...]
MNY074 Plus: The Fed and Public Stock Offerings
This week's Money For the Rest of Us Plus episode discusses the recent Federal Reserve Bank decision not to raise its short-term policy rate. I also answer a question regarding the public offering of stock by companies. The episode length is 14 minutes. … [Read more...]
MNY051Plus: Why Are Interest Rates So Low?
In this week's Money For the Rest of Us Plus episode, I discuss What are equilibrium real rates of interest and why they are important. How does the Federal Reserve decide when to raise short-term interest rates. Why has the equilibrium real rate of interest been so low and what influences it. The episode length is 15 minutes. … [Read more...]
How Have Bonds Performed Prior To and After The First Federal Reserve Policy Rate Increase
This audio lesson shares the performance of various bond sectors in the three months prior to and the three months after the first Federal Reserve policy rate change. The episode length is 8 minutes. … [Read more...]
